St. Lawrence 175/ 1 /40
BRITISH KMBA03Y,
WASHINGTON, D.C.,
January 10th, 1940.
HO. 40.
My Lord,
With reference to correspondence ending with
fu/i /itf    Y°Ur LordshiP,B despatch No. 583 (A 3998/755/45) of the
/        /      14th June, 1939, regarding the Great Lakes - 3t. Lawrence
waterway, I have the honour to inform Your Lordship that
the Administration has begun a fresh attempt to reaoh
an agreement with the Canadian Government on this subject.
2. It was reported from Ottawa in October that
the eleotion of a liberal government in Quebec and the
withdrawal of opposition on the part of the Prime Minister
of c^tario had removed the last obstacle, so far as
Canada was concerned, to the reopening of negotiations.
The reason for Mr. Mitchell Hepburn's change of attitude
was given as being the great increase in the demand for
power which must result from the volume of war orders
being placed in Canada.
3. At the same time the President at a press
conference announced that he was reorganising the Inter-
national Joint Commission and replacing its existing
members by three government officials, economy in salaries
being one of his objects.     Two of the Commissioners have
i/
so far been replaced by Mr. Hofcer Barton ffcWtorter, chief
engineer for the Federal Power Commission, and by Judge
Moore, Counsellor of the state Department, respectively.
The third remains to be settled*
4. On the 4th January the State Department
______        announced, in a release of which copies are enclosed,
CB:ACKM:NT that/
The Right Honourable
The Viscount Halifax, K. O.,
etc*,       etc., etCi
7
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that at the invitation of the Dominion Government
three United States representatives would proceed to
Ottawa for informal discussions, evidently intended
to lead on to a consideration of the tentative draft
treaty which the United States Government communicated
to the Dominion Government in May, 1938.    (See 3ir
Ronald Lindsay's despatch No* 505 of the 2nd May, 1938).
The three American representatives, two of them being
officials of the State Department and the third the
Chairman of the Federal power Commission, left for Ottawa
on January 6th and press reports from Ottawa suggest
that good progress was made at the discussions* The
American delegates left for Washington on January 9th
and a further conference is expected on January 22nd,
when the Canadian delegates will come to v.ashington.
5* I am sending a copy of this despatch to the
High Commissioner for the United Kingdom at Ottawa.
I have the honour to be,
with the highest respect,
lay Lord*
Your Lordship*s most obedient,
humble servant,
(SOD) LOTHIAN